El Salvador’s Bitcoin Bet Has Yet to Improve Life for Most Citizens
El Salvador made headlines around the world when it became the first country to adopt Bitcoin as legal tender in September 2021. The Central American nation has since accumulated over 5,900 BTC in its national reserves, worth hundreds of millions of dollars at current prices. Yet despite these bold moves, the promised benefits for everyday Salvadorans remain largely unrealized.
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The Reality on the Ground
While President Nayib Bukele celebrates the country’s Bitcoin gains on social media, most citizens continue to struggle with basic economic challenges. The majority of Salvadorans still lack access to traditional banking services, and Bitcoin adoption among local businesses and consumers has been disappointingly low. Recent surveys indicate that less than 20% of businesses accept Bitcoin payments, and even fewer citizens use it for daily transactions.
El Salvador’s Bitcoin reserve fails to help the average citizen, NGO exec
Changes to El Salvador's Bitcoin laws under the IMF agreement put the benefits of BTC even further out of reach for the average resident. pic.twitter.com/UWHjrYPCiW— Defxsage 👾 (@DeFxsage) July 25, 2025
The government’s Chivo wallet, launched with a $30 Bitcoin bonus for each user, initially saw widespread downloads. However, technical glitches, fraud concerns, and limited practical use cases led many to abandon the platform after claiming their bonus. Rural communities, which make up a significant portion of the population, face additional barriers including limited internet connectivity and lack of technological literacy.
Economic Impact and Missed Opportunities
Critics argue that the billions invested in Bitcoin could have been directed toward pressing social needs like healthcare, education, and infrastructure. El Salvador continues to grapple with high poverty rates, with nearly 30% of the population living below the poverty line. The volatility of Bitcoin has also created budgetary uncertainties, making it difficult for the government to plan long-term social programs.
The promised reduction in remittance fees, one of the key selling points of Bitcoin adoption, has seen mixed results. While some Salvadorans abroad have successfully used Bitcoin to send money home more cheaply, the complexity of the process and price volatility have deterred widespread adoption. Traditional remittance services remain the preferred choice for most families.
Furthermore, the country’s Bitcoin experiment has strained relationships with international financial institutions. The International Monetary Fund has repeatedly warned about the risks of using Bitcoin as legal tender, potentially limiting El Salvador’s access to crucial development loans and financial assistance.
As El Salvador’s Bitcoin journey continues, the gap between the government’s crypto enthusiasm and tangible benefits for ordinary citizens remains stark. While the national Bitcoin reserves may look impressive on paper, they have yet to translate into meaningful improvements in the daily lives of most Salvadorans.
